India Employment-Related Fraud

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First Advantage Private Ltd., part of the employer services segment of First Advantage Corp., Asia-Pacific&#39;s largest background screening and talent acquisition solutions provider, has released its second quarterly report, &ldquo;Background Screening Trends &ndash; India.&rdquo;<br /> <br />Ashish Dehade, managing director (West Asia) of First Advantage, said, &ldquo;Background screening acts as a first line of defense against potential fraud and security breaches. More sectors taking it up actively would employ fewer candidates misrepresenting information and thus, concurrently, fewer likely to engage in frauds or security breaches.<br /> <br />&ldquo;Increasing incidents of reported involvement of employees in internal or external frauds and collusion in data-security infringement have led to greater recognition of the need for background screening. Reported incidences of car drivers being involved in crimes in the IT/IT-enabled Service (ITeS) sector; employees gaining access to sensitive customer information in the banking; financial services and insurance (BFSI) sectors; and staff in educational institutions involved in exploitation cases have all led to growing awareness of the need for background screening of employees, as well as vendor/contract staff.&rdquo;<br /> <br />The second &ldquo;Background Screening Trends &ndash; India&rdquo; report, based on employment background checks conducted by First Advantage from April to June 2008, observes: <br /> <br /><ul><li>The IT industry has experienced the highest increase (almost 3.5 times) in education-related discrepancies compared to Q1-08.</li><li>Educational qualification-related discrepancies in the BFSI sector are the highest in six quarters.</li><li>All the key industries tracked have shown an increase in education-related discrepancies.</li><li>Maximum discrepancies for educational qualifications were related to institutions in Northern India at 34 percent, followed by Southern India at 30 percent.</li><li>Almost half (48 percent) of all fake university cases came from Northern India, followed closely by Western India (43 percent).</li><li>Pune topped the city list for education-related discrepancies, followed by Mumbai and Delhi.</li><li>Almost half of criminal discrepancies came from Northern India (46 percent), followed by Southern India (35 percent).</li><li>The overall discrepancy rate has dropped during Q2-08 to one in every four candidates from one in every three candidates during Q1-08.</li><li>The share of past employment-related discrepancies has increased to 75 percent of all discrepancies in Q2-08 vis-à-vis 70 percent of all discrepancies in Q1-08.</li><li>One in every five resumes had employment-related discrepancies in Q2-08 as compared to one in every six resumes during Q1-08.</li><li>Employment-related discrepancy rate for the BFSI and IT sector is the highest in the past six quarters.</li><li>ITeS/ business process outsourcing (BPO) sector experienced the least employment-related discrepancy in six quarters.</li><li>One in three resumes had employment-related discrepancies for the logistics, media, aviation and fast moving consumer goods (FMCG) sectors.</li><li>In the BFSI, real estate, chemicals and education sectors, one out of every four resumes had employment-related discrepancies.</li><li>Employment-related discrepancies have more than doubled for the FMCG, IT and recruitment sectors over Q1-08.</li></ul>

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